Pumpkin Patch takes $12 mln charge after latest round of write downs
By Paul McBeth
Aug. 29 (BusinessDesk) - Pumpkin Patch, which slashed its earnings forecast earlier this year, will take a $12 million charge to write down the value of stores and IT software, while posting underlying profit in line with guidance.
The children's clothing chain said a provision for the write down of IT software and store assets will be reflected in its 2014 results, taking total reorganisation costs to $12 million. Post-tax earnings before reorganisation costs were between $1 million and $2 million in the 12 months ended July 31, in line with its May guidance of between $1 million and $3 million.
The Auckland-based retailer embarked on a strategic review in a bid to revive its ailing performance, focusing on its store footprint, stock levels, and an IT system upgrade.
Pumpkin Patch said early trading in the 2015 financial year was "encouraging" with summer season collections "positively received."
The shares were unchanged at 42 cents yesterday, and have slumped 53 percent this year.